Sales are on the rise at Dunelm, the Leicester-headquartered homewares retailer has highlighted in a new trading update.

For the 13-week period ended 27 September 2025, the business showed “strong sales growth,” up 6.2% year-on-year to £428m.

Dunelm noted that it has delivered broad-based growth across categories. As customers prepared their homes for the colder, darker months, the firm saw strong demand for warming textiles, with rugs and throws trading particularly well.

Meanwhile, during the quarter Dunelm delivered its biggest ever student offer, driving 40% year-on-year growth in the campaign overall, broadening Dunelm’s appeal to new and younger audiences.

The business shared that it continues to make good progress against strategic priorities and invest for future growth. It added that the timing of investments, alongside inflationary impacts, means profits are expected to be more heavily weighted towards the second half of the year.

Clo Moriarty, CEO, said: “After a few weeks immersing myself in the business, I’m delighted to see up close the qualities that attracted me to Dunelm: an inclusive culture, committed colleagues, and a genuine passion for the role we play in our customers’ lives.

“It’s a great time to be joining Dunelm. The business has delivered another strong performance in the first quarter, which reflects both the appeal of our customer offer and the strength of our business model. Building on this, I see real energy across the business – from the launch of our new app, to a vibrant brand campaign celebrating colour choices across our ranges – driving improvements to our proposition.

“These initiatives, and many more, show the potential we have to build even deeper connections with a broad and diverse customer base. With the reach of our national store footprint, a growing digital presence, and a growth mindset that brings together people and technology, I’m genuinely excited about what’s ahead.”

Revenue is down and pre-tax profits have more than halved at Shoezone, the Leicester footwear retailer.

According to an unaudited full year trading update for the 52 weeks to 27 September 2025 (FY 2025), revenue was £149.1m, down 7.6% on the year prior. Shoezone pointed to a decline in consumer confidence and general negativity in the UK, as well as trading out of 28 fewer stores.

The key weeks of Back-to-School trade, however, were in line with expectations, with digital revenue up 2.3% year-on-year.

Profit before tax is expected to be approximately £3.3m for FY 2025, down from £10.1m in the year prior. Adjusting for a £0.9m foreign exchange revaluation gain, adjusted profit before tax will be approximately £2.4m (FY2024: £10m).

The decline, compared to last year, is due to a sales reduction, year-on-year increases in National Insurance, depreciation, National Living Wage and first half container prices, Shoezone said.

Management continue to be cautious about the near-term outlook, with trading conditions expected to remain subdued.

Charles Smith, chairman, said: “This was a challenging year, particularly in the second half, as consumer confidence fell following the Government’s October 2024 budget, with persistent inflation, higher interest rates and reduced levels of disposable income all contributing to general negative economic and consumer sentiment in the UK.

“Sales were good when there was a clear reason to buy, such as the warm summer and the Back-To-School season. However, overall discretionary spending remains subdued as consumers exercise greater caution in their expenditure.

“Digital revenue outperformed last year and the ongoing strategy of refitting and relocating stores to our larger format continued, with 201 conversions completed, alongside net cash levels improving year-on-year.”

Derby-based accountancy firm Ashgates has completed its rebrand to DJH following a merger that expands the group’s national presence. The firm, established in 1991, is now part of a professional services network operating 16 offices and employing more than 750 staff across England and Ireland.

The transition follows a record year for the Derby office, which achieved £6 million in annual revenue and experienced increased demand for its extended range of business services. These include research and development tax relief, capital allowance support, commercial funding, estate planning, and human resources advisory.

Scott Heath, Chief Executive Officer of DJH, said, “We’ve already achieved so many great things with the Derby team, both for our clients and local community. They always deliver exceptional business advice and are a brilliant addition to the team.”

The rebrand aligns with DJH’s wider growth strategy and recent recognition as a certified B Corporation. The group achieved a B Lab assessment score of 83.5, marking a formal commitment to meeting verified standards of social and environmental performance, accountability, and transparency.

Steve Martin, Director at Ashgates, added, “Aligning our brand with DJH allows us to leverage our combined strengths, whilst maintaining our trusted relationships with clients. We’re looking forward to continuing to work together as one team!”

DJH now ranks among the UK’s top 30 accountancy firms. Its Derby branch will continue to serve owner-managed businesses and SMEs across the East Midlands, offering advisory and compliance support through the expanded resources of the wider network.

Inflation in the East Midlands remained steady at 3.8% in the 12 months to September 2025, according to the Office for National Statistics. The rate has now stayed unchanged for three consecutive months, remaining above the government’s 2% target and continuing to strain business costs across the region.

Data from the East Midlands Chamber’s Quarterly Economic Survey shows inflation and corporate taxation are the main concerns for regional businesses. Many firms have held back on investment, citing sluggish economic growth and uncertainty ahead of the Autumn Budget. National GDP increased by only 0.1% in August, signalling weak momentum across key sectors.

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “Stagnant inflation keeps the cost of doing business high and puts pressure on firms to consider price rises. The 3.8% level inflation has held at for three months in a row is still far too high and even if it hasn’t risen, it is far above the government’s 2% target. Business rates need reform, firms need to be given incentive to invest and there must be no tax increases applied to them. The Budget is a clear opportunity for the Chancellor to be fully supportive of business.”

With inflation stuck at nearly double the target rate, firms across the East Midlands are looking for a Budget that prioritises stability, productivity, and long-term investment confidence.